Commentary & Deal Flow

Reoffer: 8.5yr: G+198bp / 99.733 / 6.917%
Benchmark: 8.5yr: UKT 4.5% 07-Sep-34 / HR 95%

Final Books £585m. Peak book in excess of £835m.

Launched: 8.5yr: £300m @ G+198bp - Books in excess of £645m (pre rec)
Guidance: 8.5yr: G+200a (+/-2 WPIR) - Books in excess of £835m
IPTs: 8.5yr: UKT+215a

• Issuer: SW Finance I PLC
• Guarantors: Southern Water Services Ltd, SWS Holdings Ltd, SW Finance II Ltd and SWS Group Holdings Ltd
• Expected Issue Ratings: Ba1/BBB-/BBB- (Moody's/S&P/Fitch)
• Format: Reg S, Bearer, Senior Secured, Class A
• Size: £300m
• Settlement: 14-May-26 (T+5)
• Maturity: 14-Nov-34
• Coupon: 6.875%
• Reoffer Price: 99.733
• Reoffer Yield: 6.917%
• Reoffer Spread: G+198bp
• Reference Gilt: UKT 4.5% Sep-34 / HR 95%
• Hedge Deadline: 15.35 UKT
• Par Call: 3-month par call
• Use of Proceeds: GCP, including payment of the consideration for the proposed tender of the issuer's existing notes (ISIN: XS2325617939)
• Denominations: £100k x £1k
• ISIN: XS3368929702
• Bookrunners: Lloyds (B&D), MS, NatWest
• Optional Redemption: Redeemable at (i) par on or after 3 months prior to the Maturity Date or (ii) Make Whole at Gilts + 15% of re-offer spread
• Target Market: Eligible counterparties and professional clients only (all distribution channels)
• Interest Payment Dates: Semi-annual
• Day Count Basis: Act/Act (ICMA)
• Books Subject: 13.10 UKT